Investing with little to no money down

Rental Property Investor · Louisville, KY · Member since 2019 · 37 posts · 61 votes

Can anyone provide guidance when purchasing deals with little to no money down? I'm in a place that I believe I can make a push to start my business, I just need guidance on how to get started with little to no money. Thanks!

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Joe VilleneuvePro Member

Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes

That's like asking if there's anyone that knows how to make beer. The answer is yes. The specifics of how depends on where you're starting from, where you want to end up, and the specific property in question.

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
That's like asking if there's anyone that knows how to make beer. The answer is yes. The specifics of how depends on where you're starting from, where you want to end up, and the specific property in question.
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Jeff Byrne
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Rental Property Investor · Louisville, KY · Member since 2019 · 37 posts · 61 votes
6y
@Joe Villeneuve first I love the beer reference lol. Let me clarify my current situation. I have student debt ranging in the $30K region, but have income from my 9-5 to cover all costs and save. I am looking for something that I could house hack or even purchase a duplex and do the same thing. My issue is knowing what to look for and different avenues to fund the purchase with little to nothing down.
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
Originally posted by @Jeff Byrne:
@Joe Villeneuve first I love the beer reference lol. Let me clarify my current situation. I have student debt ranging in the $30K region, but have income from my 9-5 to cover all costs and save. I am looking for something that I could house hack or even purchase a duplex and do the same thing. My issue is knowing what to look for and different avenues to fund the purchase with little to nothing down.

|You provided us with a couple of details. However, the result is going from "how to make beer" in general, to "how to make all types of beer...except light". There's so much more to this, and so many options, that a simple answer doesn't exist. I would say "I'm sorry", but I'm really not. It's all those many options that make it great.
If you really want to get a handle on this, and why I compare this all to making beer, PM me.
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Kevin Paglia
New to Real Estate · Las Vegas NV · Member since 2020 · 90 posts · 46 votes
6y
@Jeff Byrne Bigger pockets has two books that will help you. I know, I bought them both. One on investing with little to no money down, the other is house hacking. Good references and good reads. They have left me with many ideas. Tho I admit, figuring out how to sell me, as a first time buyer to an investor leaves me in the dark.
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Account Closed
New to Real Estate · Merced, CA · Member since 2019 · 10 posts · 3 votes
6y
Originally posted by @Kevin Paglia:
@Jeff Byrne Bigger pockets has two books that will help you. I know, I bought them both. One on investing with little to no money down, the other is house hacking. Good references and good reads. They have left me with many ideas. Tho I admit, figuring out how to sell me, as a first time buyer to an investor leaves me in the dark.

Agreed! House hack book is a good one. Definitely provides you with alot of good ideas and information. Keep on studying!!
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6y
getting a lender to give you a loan with little or no money down is like a needle in a haystack. Best bet would be owner financing and even then it may be difficult
If you do get it expect to pay 12%+ and it cannot be owner occupied. If it’s owner occupied you have to go more conventional route (or seller financing)
7e investments53 Reviews
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Brian Gibbons
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
6y
Louisville is a good rental town. Good jobs, good college town.

I would think about these ideas.

1. Be a bird dog finder for an investor. Get your cash up to $10,000 min for operating expenses and 3 months personal from finder fees. Find motivated sellers. Lots of ways to do that, search on BP.

2. Do lease option assignments. Find a low equity deal and sign up the seller for nothing down, because you are selling your contract to a renter that wants to own.

3. Find a doctor, be a JV Partner, find a rehab and fix and resell, use the doctor's money, split the profits.

4. Study landlord tenant law, and closing conventions. See

https://www.englishlawgroup.com/the-closing-process

5. My BP Blog has a Motivated Seller Questionaire. See

https://www.biggerpockets.com/member-blogs/3/44624-motivated-seller-questionaire

DO NOT JUST READ IT TO PROSPECTS. MEMORIZE THE QUESTIONS. YOU ARE LOOKING FOR A PROBLEM.

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Breelon Bryant
Rental Property Investor · Jackson, MS · Member since 2020 · 156 posts · 41 votes
6y
In my opinion, yes you can spend "little money down" but what defines "little money" is the real question. Where I live you can get a duplex-triplex-4 plex for 150k-200k and you could do a FHA loan (3.5%) and pay (5250-7000) down and negotiate the closing cost for the seller to pay and VIOLA! You have your house hack (assuming no major repairs are needed). I love house hack because u live for free and build equity at the same time so your next projects have money lined up and ready to be spent
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Jacky Tu
Real Estate Agent · Madison, WI · Member since 2020 · 20 posts · 9 votes
6y
I recommend reading the BP book on house hacking since any property you buy under a 20% downpayment will have to be owner occupied. This is unless you are able to raise private money for a 20% down payment. The other option would be to find a partner who would supply the downpayment and you provide value/services in another way. Such as managing a BRRRR or flip, and returning the money plus interest.
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